Wednesday, February 24, 2010 - 3:44 PM

5.00% Savings Account at NetSpend???

This FW thread looks into the NetSpend savings account that currently pays 5% APY on all balances. This is part of a prepaid debit card program that's intended for under-banked Americans and those who may not be able to establish accounts with traditional banks. The FW thread mentions many limitations and fees.

A reader asked me about this 5% account in February 2009, and he pointed out the following links: 2008 press release on NetSpend and consumer complaints on NetSpend.

The NetSpend page states that the 5% is a promotional rate, but I wonder if it could be an opportunity similar to that Citibank 4% secured credit card program. If you find out more, please leave a comment.

KenBDG5,153 posts since
Nov 29, 2009
Rep Points: 117,145

1. Wednesday, February 24, 2010 - 7:01 PM

Here is a link to info about this card. There are many fees:

https://www.netspend.com/account/faq.m#q06

Anonymous963 posts since
May 9, 2010
Rep Points: 1,953

2. Friday, February 26, 2010 - 9:45 AM

I have been using the NetSpend Savings account for a while now and it is great! It has been 5% APY for a few years now but it is listed as a "promotional rate." I dont think it will be changing anytime soon. And regarding the fees: they are mainly charged when you use the card for credit or debit. If you are only using the card for savings you wont really need to worry about fees, unless you are loading cash on the card. NetSpend also has free direct deposit so you could always have a portion of your check go into the account.

Anonymous963 posts since
May 9, 2010
Rep Points: 1,953